Bad Faith Insurance Claims in Missouri: Legal Steps to Pursue Your Case
When an insurance company denies, delays, or underpays a legitimate claim, Missouri law gives policyholders the right to fight back. A bad faith insurance claim is a legal action that holds insurers accountable for acting unreasonably or dishonestly in handling your claim. Under Missouri statutes such as Mo. Rev. Stat. § 375.420, you may recover damages well beyond the original claim amount. Below, we walk through each step of pursuing a bad faith insurance claim in Missouri so you know exactly what to expect and how to protect your rights.
What Is Insurance Bad Faith in Missouri?
Insurance bad faith is the failure of an insurer to provide the protections it is contractually obligated to supply when a valid claim is made. Missouri law requires insurers to act in good faith, meaning they must deal with claims in a fair, honest, and timely manner. When they violate that duty, policyholders have a legal remedy.
Importantly, Missouri common law does not recognize a first-party tort claim for bad faith the way many other states do. Instead, Missouri provides a statutory cause of action known as "vexatious refusal to pay" under Mo. Rev. Stat. § 375.420 and § 375.296. Vexatious refusal to pay is the legal term for an insurer's unjustified denial or delay of a valid claim without reasonable cause.
Recognizing the Signs of Bad Faith
Not every denied claim constitutes bad faith. However, certain insurer behaviors consistently signal a problem. Watch for these red flags:
- Denying a claim without conducting a thorough investigation
- Unreasonable delays in processing or paying a valid claim
- Offering a settlement far below the documented value of your losses
- Misrepresenting policy language or coverage terms
- Refusing to defend you against a third-party claim made against your policy
- Failing to respond to settlement demands within policy limits
If you have experienced a serious personal injury or catastrophic injury and your insurer is using these tactics, it may be time to explore a bad faith action.
Step-by-Step Legal Process for a Bad Faith Claim
Step 1: Document Everything
Keep copies of every communication with your insurer, including emails, letters, and notes from phone calls. Save your original policy, any denial letters, and all medical records tied to your claim. This documentation becomes the foundation of your case.
Step 2: Request a Written Explanation
Missouri insurers are required to provide reasons for a claim denial or delay. Request that explanation in writing. A vague or unsupported rationale can serve as evidence of unreasonable conduct later.
Step 3: Consult an Experienced Bad Faith Attorney
Bad faith litigation is complex. An insurance bad faith lawyer can evaluate whether the insurer violated state law and help you build a strong case. Early legal involvement is critical because evidence of insurer misconduct can be time-sensitive.
Step 4: File a Complaint with the Missouri Department of Insurance
While not required before filing a lawsuit, submitting a complaint to the Missouri Department of Commerce and Insurance creates an official record and may prompt the insurer to act. The Department regulates insurer conduct under the Missouri Unfair Claims Practices Act.
Step 5: File a Lawsuit
If negotiations fail, your attorney can file a bad faith lawsuit in Missouri court. The lawsuit is a separate cause of action from the underlying insurance claim and can result in additional damages beyond the original policy amount.
Proving Your Bad Faith Case Under Missouri Law
The burden of proof falls on the policyholder. Under § 375.420, you must establish the following elements:
| Element | What You Must Show |
|---|---|
| Valid Policy | A claim under an insurance contract issued or delivered to a Missouri resident |
| 30-Day Waiting Period | You waited at least 30 days for payment before filing suit |
| Covered Claim | The claim was in accordance with the terms of the policy |
| Refusal to Pay | The insurer refused to pay within 30 days |
| Vexatious Conduct | The refusal was vexatious and without reasonable cause |
Missouri courts evaluate the refusal based on the information available to the insurer at the time of the claim. A jury may infer bad faith from the totality of the circumstances, meaning direct evidence of vexatious conduct is not always required.
Damages You Can Recover
A successful bad faith claim in Missouri can yield significant financial recovery. Available damages include:
- Original claim amount: The full value of the benefits owed under your policy
- Interest: Statutory interest on the unpaid claim
- Attorney's fees and costs: Missouri law permits recovery of legal expenses in vexatious refusal cases
- Penalty damages: Up to 2% of the claim amount as an additional penalty
- Punitive damages: Available in rare cases where insurer conduct was particularly malicious or reckless
- Excess judgments: In third-party cases, insurers may be liable beyond policy limits
Presley and Presley Trial Lawyers has secured recoveries including a $16.3 million insurance bad faith verdict and an $11 million verdict against major insurers, demonstrating the significant compensation that skilled advocacy can achieve.
Statute of Limitations and Deadlines
In Missouri, the statute of limitations for filing a bad faith insurance claim is five years. While that may seem generous, delay works against you. Evidence can disappear, witnesses forget details, and insurers may continue to profit from their misconduct. Early action with a qualified attorney gives your case the strongest possible foundation.
Remember that certain steps have their own timelines. You must wait at least 30 days after requesting payment before filing a vexatious refusal lawsuit. Your attorney can help you navigate these procedural requirements.
Why Presley and Presley Trial Lawyers for Bad Faith Cases
Presley and Presley Trial Lawyers, LLC is a Kansas City-based firm with over 40 years of experience fighting insurance companies on behalf of injured individuals and families. The firm is nationally recognized for its deep expertise in insurance bad faith litigation.
Kirk Presley and Jill Presley have both received 2026 Best Lawyers individual recognition. Jill Presley was named Aviation Lawyer of the Year for 2026 by Best Lawyers. The firm earned Tier 1 rankings in Kansas City for Personal Injury Litigation—Plaintiffs, Aviation Law, and Insurance Litigation in the 2026 Best Lawyers, Best Law Firms edition.
The firm publishes a monthly Bad Faith Update Newsletter that has been a resource for attorneys and clients for nearly five years. When insurance companies learn Presley and Presley is involved, they frequently change their stance on settlement. That reputation is backed by results: $16.3 million and $11 million bad faith verdicts, a $30 million carbon monoxide settlement, and a $25 million motorcycle crash recovery, among others.
Key Takeaways
- Insurance bad faith in Missouri is primarily pursued through the "vexatious refusal to pay" statute (§ 375.420).
- You must wait 30 days after requesting payment before filing a bad faith lawsuit.
- Missouri's statute of limitations for bad faith claims is five years, but acting quickly preserves evidence.
- Recoverable damages include the original claim amount, interest, attorney's fees, penalty damages, and potentially punitive damages.
- Document every interaction with your insurer from day one.
- An experienced bad faith attorney can evaluate whether the insurer's conduct rises to the level of vexatious refusal.
- Presley and Presley Trial Lawyers has secured multimillion-dollar verdicts against major insurers in bad faith cases.
Frequently Asked Questions
What qualifies as insurance bad faith in Missouri?
Bad faith occurs when an insurer intentionally denies, delays, or underpays a legitimate claim without reasonable cause. Missouri addresses this through the vexatious refusal to pay statutes (§ 375.420 and § 375.296), which allow policyholders to sue when an insurer's refusal was unreasonable.
How long do I have to file a bad faith insurance claim in Missouri?
The statute of limitations is five years. However, you must also satisfy a 30-day waiting period after requesting payment before you can file suit under § 375.420.
What damages can I recover in a Missouri bad faith case?
You may recover the original claim amount, interest, attorney's fees, a penalty of up to 2% of the claim, and in rare cases, punitive damages. In third-party bad faith cases, insurers can be held liable beyond policy limits.
Does Missouri recognize common law bad faith for first-party claims?
No. Missouri common law does not recognize a first-party tort claim for bad faith. Instead, the state provides statutory remedies through the vexatious refusal to pay laws.
What is the difference between first-party and third-party bad faith?
First-party bad faith occurs when your own insurer mishandles your claim. Third-party bad faith applies when your insurer fails to properly handle a claim made against you by another person, such as refusing to settle a lawsuit within your policy limits.
Should I file a complaint with the Missouri Department of Insurance?
Filing a complaint creates an official record and can sometimes prompt the insurer to act. While it is not a legal prerequisite to filing a lawsuit, it can be a useful step in building your case.
How much does it cost to hire a bad faith insurance attorney?
Most personal injury and bad faith attorneys, including Presley and Presley Trial Lawyers, work on a contingency fee basis. This means you pay nothing upfront and only owe legal fees if your case results in a recovery.
Can an insurer be liable beyond policy limits?
Yes. In Missouri, an insurer that acts in bad faith by refusing to settle a claim within policy limits when it had the opportunity to do so may be liable for the full excess judgment against the insured.
Protect Your Rights Against Insurance Bad Faith
If your insurance company is denying, delaying, or undervaluing your claim, you do not have to accept it. Contact Presley and Presley Trial Lawyers at (816) 931-4611 for a free consultation. Our Kansas City attorneys have the experience, resources, and track record to hold insurers accountable and fight for the compensation you deserve.